Conflicts in Libya, Ukraine continue to keep oil above $110

Brent crude held steady above $110 per barrel for a second weekly gain, supported by conflicts in Libya and Ukraine as well as positive economic data in the world’s top oil consumers, the US and China.

A recent rally in oil prices, which pushed Brent to a 2-month peak just above $111 could gain further momentum as Asian shares edged up to one-year highs on signs of improving momentum in the world’s biggest economies.

The oil market was supported by signs of global economic growth, with US manufacturing growth picking up to a three-month high in May, and China’s factory sector turning in its best performance this year in May.

Oil prices were also supported by new supply disruptions in Libya. Protesters shut the headquarters of the company running the Brega oil port, the only eastern port to have remained open throughout most of the nine month stand-off with a rebel group.

Libya’s oil output was around 230,000 barrels per day but the exact production level remained unclear at the moment.

Investors also kept an eye on the ongoing conflict in Ukraine – a main gas supply route for Europe from Russia – where presidential elections results are being awaited. Ukraine said more than a dozen servicemen were killed in an early morning clash with pro-Russian separatists, fuelling security concerns ahead of announcement of the election results.